On June 24, Australia-based mining company BHP Billiton announced the approval for US$488 million of further investment to support development of the Jansen Potash Project in Saskatchewan, Canada. The funding will enable BHP Billiton to develop the first 350 meters of production and service shafts once the government approvals are received.
With this additional financing, BHP Billiton's investment in Jansen has increased to $1.2 billion. Based on the current schedule, Jansen is expected to start producing saleable potash from its 3,370 million mt in-situ Mineral Resource in calendar year 2015. The project is designed to ultimately produce approximately 8 million mt per year of agricultural grade potash with an estimated 70-year mine life.
BHP Billiton also continues to study other potential projects in the Saskatchewan potash basin and will start drilling at Melville in July this year. The company believes its Saskatchewan potash business could reach an annual production capacity of more than 16 million mt per year.
On the other hand, Brazilian miner Vale SA said on June 22 that it is also planning to build a $3 billion potash project in Saskatchewan. The company seeks to strengthen its position in the potash industry by privatizing its fertilizer unit. With this move, the Brazilian-based miner will have more control over the business that now represents about two percent of global potash production, as Brazil tries to reduce its dependence on imported fertilizers.